The No. 1 soybean importer in the world, China, is toughening its standards for imported U.S. soybeans, a step that may cut into the U.S. share of the market, said Reuters. A USDA official said China made the move because of concerns that weed seeds may be hitchhiking along with U.S. soybeans.
Starting Jan. 1, cargoes containing up to 1 percent foreign matter — which can be broken kernels, sand, weed seeds, and bits of rock, metal, plastic, glass, and so on — will be expedited and those with higher amounts will be held for testing. The most common grade of U.S. soybean exports, No. 2 yellow soybeans, allows up to 2 percent foreign material. Trade experts say that every time grain is moved, some of the kernels shatter, so foreign matter accumulates during the export process.
“U.S. farmers in recent years have been battling herbicide-resistant weeds, the remnants of which show up in harvested beans,” said Reuters. A grain analyst estimated it would cost 15 cents a bushel for U.S. exporters to clean debris from cargoes to assure less than 1 percent foreign material. Chinese processors could turn to South American beans to avoid a delay at the ports, he said. An Argentine grain official said China allows up to 2 percent foreign material in soybeans from Argentina.